Question
Which of the following statements are correct?
- Ability to pay principle of taxation holds that the amount of taxes people pay should relate to their income or wealth
- The Benefit Principle of taxation states that individuals should be taxed in proportion to the benefit they receive from Government programmes
- A progressive tax takes a larger share of tax from poor families than it does from rich families
- Indirect taxes have the advantage of being cheaper and easier to collect
Answer: Option A
Answer: (a)A progressive tax receives a larger percentage from the income of higher earners than it acts from low income person.
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Answer: (a)A progressive tax receives a larger percentage from the income of higher earners than it acts from low income person.
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